Buying real estate in Thailand is becoming more and more attractive for investors every year. The country beckons with its breathtaking nature, mild climate, affordable cost of living, and open and good-natured people. The Kingdom attracts many expats, as well as investors wishing to rent apartments and villas to tourists. Bangkok and Phuket remain the most popular locations for buying a property. In this article, we will review the differences in real estate markets in these regions and talk about where it is more profitable to invest in 2023.
Content:
- Phuket real estate market
- Bangkok real estate market
- Comparison of real estate costs and returns
- Cost of living in Bangkok and Phuket
- Brief overview of life in Bangkok and Phuket
- Purchasing real estate in Thailand
Phuket real estate market
Phuket is a tropical paradise with jungles and mangroves. The island has long been a favourite place for investors when it comes to buying real estate in Thailand. There are properties for every taste:
- luxury seaside villas in Thailand
- family houses
- budget condos
Recently, the Phuket real estate market has been showing strong growth. Both short- and long-term rentals are well sought-after. Investing in real estate in Phuket can generate great returns due to the high demand for rentals. The development market is believed to be very profitable, and therefore investors can expect excellent return on investment.
Here are the most popular areas for real estate investment in Phuket:
- Patong
- Kamala
- Surin
- Cape Yamu
There are great beaches and high-end resorts, while residential and commercial properties are constantly rising in price. These areas are definitely worth considering for long-term investment.
The average rental yield in Phuket ranges from 3.7% to 11.4%.
Bangkok real estate market
Bangkok is the capital and largest city of Thailand and a popular real estate investment destination. Here you can find both luxury condos and more affordable apartments in Thailand. Since the city is a tourist and business hub, the demand for rentals in Bangkok is very high.
Over the past few years, the Bangkok real estate market has been growing steadily, and therefore investors should take note of the potential for capital growth. Popular areas in Bangkok include Sathorn and Sukhumvit.
The rental yield in the Thai capital is about 4.45%.
Comparison of real estate costs and returns
Price-to-rent ratio in the centre of Bangkok is 30.84, and Phuket, 25.38. Outside the city centre, it is 28.52 and 16.65 respectively.
Property rentals
To have a better understanding of the situation in the development markets of Bangkok and Thailand, let’s compare rent prices. For example:
- A one-bedroom apartment outside the centre costs THB 10,894 (USD 316) in Bangkok and THB 17,600 (USD 511) in Phuket.
- A three-bedroom apartment in the city centre costs THB 65,908 (USD 1,914) in Bangkok and THB 43,333 (USD 1,258) in Phuket.
- A three-bedroom apartment outside the centre costs THB 33,879 (USD 984) in Bangkok and THB 42,500 (USD 1,234) in Phuket.
Property purchases
When purchasing residential properties, the average cost per square metre should be taken into account. The price per m2 of apartments in the centre of Bangkok is THB 195,728 (USD 5,686), and in the centre of Phuket, THB 108,750 (USD 3,159). The cost of 1 m2 of a residential unit outside the centre is THB 90,000 (USD 2,614) in Bangkok and THB 73,750 (USD 2,142) in Phuket.
Utilities
Basic utility bills in Bangkok are lower compared to Phuket. They include bills for:
- electricity
- heating
- air conditioning
- water
- rubbish collection
In Bangkok, all this costs THB 2,712 (USD 78), and in Phuket, THB 3,041 (USD 88). For internet speed of at least 60 Mbps as well as associated equipment for access, you will have to pay THB 535 (USD 16) in Bangkok and THB 524 (USD 15) in Phuket.
Salaries
The average salary in Bangkok is higher than in Phuket. After taxes, it is THB 22,284 (USD 647) in the former city and THB 19,428 (USD 564) in the latter.
Cost of living in Bangkok and Phuket
Speaking of real estate costs and returns, it is worth mentioning current living expenses. In general, the costs in the two regions are comparable with each other. For example, lunch at an inexpensive cafe will cost THB 120 to 140 (USD 3 to 5), and a meal at a restaurant, around THB 1,000 (USD 29). Food prices are slightly cheaper in Bangkok, and so are, for instance, public transport fares. However, the difference is insignificant, and in each city, fares are approximately THB 10 to 20.
Brief overview of life in Bangkok and Phuket
One can never say enough about these two locations in Thailand. Everyone who wants to travel to this country or buy real estate there has them on their must-visit list. If you are more interested in long, golden sandy beaches and the sea, then you should definitely opt for Phuket. In Phuket, you will find magnificent places with crystal clear water surrounded by jungle. The main beaches are located on the west coast, the liveliest of which are in Patong and Karon.
If your priority is a variety of cultural events and business activities, then Bangkok will suit you more. The capital of Thailand attracts those who want to get to know Thai culture better. It is home to ancient temples, the figure of the reclining Buddha, and magnificent architecture. As for fun-packed holidays and parties, both Phuket and Bangkok are top-notch destinations. There are also no issues with transport accessibility. These locations have international airports, there is one in Phuket and two in Bangkok.
In general, the pace of life in Phuket is more relaxed; in Bangkok, it is faster and more vibrant. Families with children and retirees will like Phuket more, while Bangkok will appeal to active young people.
Purchasing real estate in Thailand
All of the above aspects should be considered when buying a property. Both locations are beloved by tourists and each year attract millions of travellers and expats from all over the world looking to rent and buy Thai real estate.
There are a number of other factors to consider when making an investment. For a comprehensive free consultation, we suggest contacting our experts. They will answer all your questions in detail and tell you on what terms it is now best to buy houses or off-plan projects in Thailand. Contact us in a convenient way for you—do not put off your dream of becoming the owner of property in Thailand! You can make it come true today.